UNITED STATES TOUR OPERATORS ASSOCIATION CITES NEW FRONTIER OF WEB FRAUD
Check Out Your Travel Company Before Paying Your MoneyThe internet can be the new frontier for travel misrepresentation and fraud, reports the nonprofit United States Tour Operators Association. While telemarketing and fax schemes still exist as vehicles for travel fraud, the internet makes it easy for unscrupulous tour operators and travel companies to misrepresent themselves and provide unsubstantiated claims, says Bob Whitley, USTOA President.
According to recent statistics (Jupiter Media Metrix), consumers are expected to spend $37.3 billion on travel web sites in 2003, up from 30.8 billion in 2002. By 2005, consumers will spend as much as $50.1 billion. While the vast majority of travel web sites are legitimate, the internet does make it simple for some companies to fool unsuspecting consumers, notes Whitley.
"We are seeing a constant stream of complaints about companies that misrepresent themselves over the internet as members of USTOA and other travel industry organizations. In the case of USTOA, this can be very serious, as all USTOA Active Member companies must participate in our $1 Million Travelers Assistance Program. The plan requires each USTOA company to set aside a fully secured $1 Million bond or Letter of Credit to reimburse consumers' payments and deposits in case the company goes out of business," he says.
By citing USTOA membership, a company is actually promising consumers they will be protected by this $1 Million coverage, cautions Whitley. "If the company falsely claims to be a USTOA member and goes out of business after you have paid for your vacation, you as a consumer are not protected by our $1 Million Plan," adds Whitley.
Any company can set up a web site and claim they are USTOA members, notes Whitley. "When consumers and travel agents bring a company to our attention, we investigate the web site and the claims. If they are falsely claiming to be USTOA members, we have our lawyers contact them and request them to cease and desist or face legal action. This is usually sufficient to deter them from further exploiting our name," he reports.
A recent search of the internet revealed a number of companies falsely claiming to be members, including a company selling travel to the Middle East, a company selling special-interest cruises, and a company specializing in train tours.
What Can You Do?
Before you put down a deposit on your next vacation, check to see if the company is a member of a reputable travel industry organization such as USTOA or the National Tour Association (NTA), which both require their members to set aside a certain dollar amount to protect consumers in case the company goes out of business. And, don't necessarily take the company's word for it. It's always best to double check with the organization itself or with your travel agent, cautions Whitley. USTOA's Web site (www.ustoa.com), for instance, includes a list of all Active Members. "If a company is not listed on our Web Site, they are not an Active Member of USTOA," cautions Whitley.
Warning Signs
Whitley also advises travelers to look for these warning signs:
Consumers who feel they are victims of fraudulent advertising or solicitations can also file a complaint with the Federal Trade Commission on the FTC web site: www.FTC.gov; or phone the FTC's Consumer Response Center: 1-877-382-4357.
USTOA currently represents 46 Active Corporate Members, with nearly 150 brands. The association's members move more than 10 million travelers yearly, and have met the travel industry's strictest standards for membership.
USTOA maintains a listing of its current Active Member companies on its web site.
Click the links below to download "The Smart Travelers Planning Tools"
Adobe Acrobat Reader is required to view PDFs. Click below to download a free copy.
The Standard for Confident Travel (2 pages)
How to Select a Tour or Vacation Package (4 pages)
USTOA Membership Destination Guide (16 pages)
Take the USTOA Vacation Personality Quiz now
If you have trouble downloading and would like a hard copy sent to you please email USTOA at information@ustoa.com.
Test Your Vacation Smarts with this Fun True/False Quiz
FINDING THE RIGHT VACATION FIT: Try These Five Questions from the Experts at USTOA
It's a lot easier--and a lot more fun--to plan your trip when you know your Vacation Personality. Find out what yours is now!
USTOA cites new frontier of web fraud: Always check out your travel company before paying your money.
10 Ways to Avoid Disappointment on Your Next Vacation
FROM THE PRESIDENT'S DESK
October 2007 Far & Wide Update
USTOA is dedicated to protecting the world's treasures for future generations
of travelers. Visit the Tourism
Cares website for more information.